CGEIT Question #275: Real Exam Question with Answer & Explanation

Question

A global enterprise is experiencing an economic downturn and is rapidly losing market share. IT senior management is reassessing the core activities of the business, including IT, and the associated resource implications. Management has decided to focus on its local market and to close international operations. A critical issue from a resource management perspective is to retain the most capable staff. This is BEST achieved by:

Options

• Areviewing current goals-based performance appraisals across the enterprise.
• Branking employees across the enterprise based on their compensation.
• Cranking employees across the enterprise based on length of service.
• Dretaining capable staff exclusively from th local market.

Explanation

Retaining capable employees requires identifying and rewarding talent based on merit and performance rather than arbitrary factors like compensation or tenure. A goals-based performance appraisal system provides an equitable and objective way to evaluate employees’ contributions, skills, and potential, which is critical during restructuring or downsizing. Research on talent retention during downsizing emphasizes the importance of equitable performance review processes to identify talented employees fairly and avoid personal bias, which helps maintain competitive advantage and business sustainability. Transparent communication and clear performance standards are also key themes in retaining talent during organizational change.

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